Given that both Sri Lanka and Bangladesh are significant exporters of clothing and rivals on the world market, a preferential trade agreement (PTA) between the two nations has the potential to increase bilateral commerce in fabric and yarn. Significant textile products like fabric and yarn present prospects for increasing trade between the two countries. With both nations significantly depending on exports of clothing to generate foreign cash, Sri Lanka is currently Bangladesh’s largest net importer of fabric and yarn.
Recently, Sri Lanka asked Bangladesh to pick up the PTA talks, which would promote commerce between the friendly countries. A virtual meeting to discuss the situation right now and the way forward has been requested by the Sri Lankan High Commission in Dhaka for the coming week. Exports of yarn from Sri Lanka exhibited remarkable growth in recent years, with exports rising from $1.273 million in 2018 to $5.752 million in 2021. These numbers have, however, fluctuated somewhat over time. Exports of yarn fell to $0.890 million in 2019 before rising to $3.867 million the following year. Exports increased to $5.752 million in 2021 but fell to $4.511 million in 2022 despite the increasing trend.
However, according to TexPro, Sri Lankan yarn imports from Bangladesh were much lower than average, totaling $1.192 million in 2022, $2.383 million in 2021, $1.707 million in 2020, $0.883 million in 2019 and $1.230 million in 2018.
Due to the fact that Sri Lanka and Bangladesh are both significant garment exporters and rivals on the international market, there has been minimal cross-border trading between the two nations. However, Sri Lanka does provide Bangladesh with a little amount of fabric and yarn. Bangladesh must investigate raw material procurement from diverse sources to meet its expanding demand considering its recent success in the apparel industry. To their mutual benefit, both nations can investigate bilateral synergies.
